TA Global slips into the red in Q3

by **Cals** Wed 30 Sep 2015, 22:18

TA Global slips into the red in Q3
By Danial Idraki / theedgemarkets.com | September 30, 2015 : 9:07 PM MYT

KUALA LUMPUR (Sept 30): TA Global Bhd ([You must be registered and logged in to see this image.] Valuation: 2.00, Fundamental: 0.85) posted a net loss of RM12.57 million or 0.24 sen a share for the second quarter ended July 31, 2015 (2QFY16), a stark difference to a net profit of RM21.17 million or 0.4 sen a share in the previous corresponding quarter.
In a filing to Bursa Malaysia today, the group attributed its under-performance to foreign exchange loss on Singapore dollar and Canadian dollar denominated borrowings, as a result of the weakening ringgit, in the investment holding segment.
Quarterly revenue almost halved to RM114.32 million against RM216.23 million in in the previous corresponding quarter. It saw a lower hotel revenue due to refurbishment works which affected occupancy, as well as the absence of loan recovery income.
For the six-month period ended July 31, the group posted a net profit of RM59.61 million or 1.12 sen a share, nearly half of RM102.67 million or 1.93 sen a share it achieved a year ago.
Accumulative revenue declined nearly 32% at RM254.98 million, from RM374.43 million in the preceding year.
TA Global views the domestic economy to be more challenging due to slower export growth and moderate private consumption, following the implementation of the goods and services tax (GST) in April this year.
The group expects to experience lower income contributions from the overseas and local property investments for FY16, in light of expected upgrading works to be undertaken at some of its investment properties.
Furthermore, the group anticipates its property sales in Malaysia to soften due to the “challenging economic outlook, stringent mortgage approvals, cooling measures introduced by the government, as well as the wait-and-see approach adopted by property investors upon the implementation of GST.”
TA Global (fundamental: 0.85; valuation: 2) closed 0.5 sen higher at 28 sen today, with 551,200 shares traded. It had a market capitalisation of RM1.46 billion.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)